Although the exact timing of the Chapter 7 bankruptcy process can vary slightly, the timeline to completion of a bankruptcy proceeding is fairly standard. If you file a Chapter 7 bankruptcy in Texas, the exact length of time until your discharge can depend on the case load of your individual courthouse, but should typically be between four and six months.
Preparation of Petition
A bankruptcy petition is an extensive, complicated document that records every detail of your financial life. Chapter 7 petitions can easily exceed 50 pages and take time to prepare. Before you enter data on the petition, you must collect information on your income, expenses, debts, payments, assets and transfers, in addition to copies of your tax returns and pay stubs. Typically, it can take a few weeks to assemble your data and enter it on your petition. If you choose to file bankruptcy pro se, or on your own without an attorney, you can expect the completion time to lengthen.
Section 341 Meeting of Creditors
In a typical Chapter 7 case in Texas, you must appear before the bankruptcy trustee only once, at your Section 341 meeting of creditors. While your creditors have the right to appear at this meeting and ask you about your financial information, usually they do not and you only have to respond to the trustee's questions. You will receive notification of the place and time of your meeting at the time you file your petition. Your meeting of creditors typically falls 20 to 40 days after filing.
Timeline for Objections
Once you file your Chapter 7 petition in Texas, your case will proceed without incident unless someone lodges an objection. The three entities that can derail your petition are your creditors, your bankruptcy panel trustee, and the U.S. bankruptcy trustee. Your creditors, particularly credit card companies, may object if you made large or recent charges on your cards, and the bankruptcy panel trustee may object if you are attempting to protect assets that exceed Texas state bankruptcy exemptions. The U.S. trustee may object if your financial situation indicates that you should not qualify for Chapter 7 bankruptcy. All objections must be lodged within 60 days of your meeting of creditors.
Awaiting Discharge
Once the 60-day objection period passes after your 341 meeting, you are entitled to your bankruptcy discharge. Even if a creditor or your trustee decides to object after the fact, they cannot prevent your discharge except in obvious cases of fraud. You may not actually receive your discharge papers for a few weeks or months after the 60-day period, depending on how backed up the Texas bankruptcy courts are.
